ccTLD Contribution Chart (Posted 22 July 2000)

10 May 2000

Internet Corporation for Assigned Names and Numbers

ICANN - ccTLD Budget Contribution Formula
and Table of FY99-00 Contribution Amounts

Background. The Task Force on Funding (TFF) made the following recommendation concerning proportional shares in the ICANN revenue budget in its report to the ICANN Board in October, 1999:

(7) The TFF believes that the annual revenue budget for continuing expenses should be allocated among the three major groupings of (i) IP address registries, (ii) domain name registries, and (iii)domain name registrars on a proportional basis. TFF has considered a range of alternatives for such allocations and recommends that the proportions for the current transitional budget year (beginning 7/1/99 and ending 6/30/00) should be 55% to gTLD registrars and registry, 35% to ccTLD registries, and 10% to IP address registries.

Concerning the amount of revenue to be budgeted to cover continuing and essential expenses, the TFF further recommended:

TFF has reviewed the Board's approved budget for the current fiscal year and the recently submitted projection of estimated actual income and expense for the year, and recommends that the amount of income to be allocated according to the proportional formulas contained in recommendation 7 should be $4,275,000.

The ccTLD 35% share, applied to the revenue amount of US$4,275,000, produces a total contribution for FY99-00 from ccTLD organizations of US$1,496,000.

ccTLD Contribution Formula. The TFF report assumed that an individual contribution formula for ccTLD organizations would be promptly forthcoming from the community. For a variety of reasons, this has not occurred, and the passage of time since the issuance of the report and the acceptance of its recommendations by the ICANN Board makes it necessary that a reasonable formula be adopted by the staff. The formula described below has been used to calculate contribution amounts for the current fiscal year as shown in the table below. The formula is identical to the one recommended by the TFF for use by the gTLD registrars, except for annual as opposed to quarterly billing. It is based on the ratio of each individual ccTLD registry's total number of assigned names to the total number of names assigned within the ccTLD community.

Annual Contribution = .35 x n/N x S

Where: E = the annual ICANN budgeted income to support continuing expenses

.35 = the 35% share attributable to the ccTLD registries/registrars

n = number of domain name registrations in each ccTLD registry as of early 2000 (data taken from various sources)

N = total number of domain name registrations in all ccTLD registries as of early 2000

S = any agreed upon one-time surcharge to be applied in a given fiscal year, such as a contribution to an operating reserve

The above calculation is subject to a minimum annual contribution of US$500, which may be waived under hardship circumstances. The formula above has been used for all ccTLDs above the minimum, with the value for N in the above formula adjusted to reflect the total registrations of all ccTLDs above the minimum.